Top News on January 18 That You Might Have Missed!
Brian is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
What happened today, why does it matter, and what could it mean for the future? Here's my take on Thursday’s company-specific and broader industry news that could have long-lasting effects on your portfolio.
U.S. Secretary of Transportation changes his mind rather quickly
Last week, the U.S. Secretary of Transportation Wood, said that Boeing's (NYSE: BA) 787 Dreamliner was safe and that he would fly in one. However, on Friday the Secretary said, “those planes won’t fly unless we’re 1,000% sure they are safe to fly”. Sounds like a different tune, huh?
Over the last week I have followed this story with Boeing very closely, and have been persistent in my belief that U.S. action is not a problem, but a collection of global initiatives could pose a substantial threat to the long-term performance of Boeing. The company has a multi-year backlog of the 787 planes, of nearly 800. The news surrounding this company will continue to be followed and should be as part of your due diligence; because if problems continue to develop, it could ultimately affect those large backorders.
Life Technologies and Roche: together at last
After Roche’s persistent attempt to acquire Illumina it looks as though they might finally move on, to the bigger and better Life Technologies (NASDAQ: LIFE). The DNA sequencing company rallied over 10% after announcing that it hired Deutsche Bank to assist in its strategic review. For the last few months there have been rumors that the company might be looking to sell itself, and that Roche may be the acquiring company. In my opinion, this is one rumor that looks to make sense. Life Technologies is one of the most innovating companies in the market, with a presence in just about everything in the medical field. Roche can not only utilize its $3.8 billion in annual revenue, but also its technology to create better products. I’ say watch LIFE over the next few months for considerable gains.
Intel’s ) is one of the most followed companies in the market, therefore it’s no surprise that its earnings were analyzed and dissected for any potential weaknesses. And although the company’s earnings weren’t too bad, it was the guidance that caused the stock to fall more than 6%. The company’s Q1 revenue expectations were below the consensus, its PC outlook was weak, and its capex forecast was horrible. If that wasn’t bad enough, analysts now believe that Intel’s guidance is too high! Therefore, in my opinion, this has all the signs of a stock to avoid, at least for now.
Morgan Stanley rips past expectations
Morgan Stanley (NYSE: MS) posted an exceptional quarter that led its stock higher by nearly 8% on Friday. Part of what made Morgan Stanley’s beat so impressive is the fact that other large banks performed so badly, such as Bank of America and Citigroup. The company flourished in almost every measurable area of its business, including: revenue and income, wealth management income, asset management fees, acquisitions, margins, etc. Much like the rest of the industry, Morgan Stanley remains cheap, and could very well trade higher as investors take money from other banking investments to buy shares of MS.
Sony rallies after selling U.S. headquarters
It has been awhile since Sony ) has been in the headlines for anything positive, or led the market in gains, but on Friday the stock traded higher by over 6.5%. The company announced plans to sell its 37-story New York skyscraper for $1.1 billion. It’s reported that the company will receive $770 million in net proceeds after repaying its debt. While this news is nice and was widely discussed, it’s no substitution for innovation, and I don’t see anything big for this company on the horizon.
Developments such as these ultimately dictate the direction of a stock, both short and long term. Therefore, it’s important that investors are aware of these developments and then, with additional due diligence, use the information to make an educated investment decision. With that being said, stay tuned to what may happen next.
BrianNichols has no position in any stocks mentioned. The Motley Fool recommends Intel. The Motley Fool owns shares of Intel. The Motley Fool is short Sony (ADR). Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. Is this post wrong? Click here. Think you can do better? Join us and write your own!